The Budapest Stock Exchange accounts for all the turnover in the Hungarian market and a large share of the Central and Eastern European market. In 2007, BSE agreed to move to abolish floor trading, the trading today takes place via the Xetra system, with redundant floor brokers taking on the role of market-makers.[9][10] Xetra is the reference market for all exchange trading in Hungarian equities and exchange traded funds. The prices on Xetra serve as the basis for calculating the BUX, the best-known Hungarian share index. Xetra has 60 per cent market share throughout Europe with over 230 trading participants from 18 European countries, plus Hong Kong and the United Arab Emirates are connected via Xetra. Xetra trading at Budapest runs from 09:00 to 17:00 with closing auction from 17:00-17:05, and post-trading trading times until 17:20. BSE was introduced a pre market trading from 08:15 to 08:30 and an opening auction call from 08:30 to 09:00.[11]

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The Exchange’s organisation, internal trading supervision, implementation of the Board’s decisions, publication of information on the exchange and the Exchange’s overall business administration are duties of the Chief Executive Officer. The Exchange shall comply with the principles established by the Capital Market Act and shall ensure that investment service providers trading on the Exchange, issuers and investors should have the power to issue their opinion while equally participating in the decision-making process affecting the Exchange. In order to ensure this, the Exchange operates committees for the representation of interests. Committee members are elected by traders and issuers, and their mandates expire at the same time as the mandates of the Board of the Exchange.

The Trading Committee formulates the professional view of the vendors, represents vendors’ interests in professional issues and ensures the institutional possibility of professional control of decisions. The Committee of Issuers formulates the professional view of the issuers, represents issuers’ interests in professional issues and ensures the institutional possibility of professional control of decisions. The representative promoting investors’ interests is authorized to issue an opinion on all proposals concerning the interests of investors. The representative is elected by the organisations and associations representing investors’ interests. The Settlement Committee participates in the preparation of decisions regarding the Exchange’s settlement system and ensures effective professional oversight. Its members and Chairman are elected by the BSE Board based on vendor recommendations. The Index Committee was set up to oversee the expansion and ongoing maintenance of the BSE’s main indexes. In addition, it is charged with developing and publishing the Exchange’s other indicators. The members of the Committee are independent market experts appointed by the Board of Directors.

Listing of equity series takes place on Prime, Standard or T Markets. In September 2017, BSE also launched a market tailored to medium-sized companies called Xtend.[12] For listing on the T Market, in addition to the above general requirements, which are basically requirements of the law, the Exchange does not impose further conditions. On the Standard Market, in addition to the basic requirements of the law, BSE prescribes a public transaction to be carried out, with regard to the equity series to be listed. In case admission is sought to the Prime Market, the company and the series of securities to be listed shall comply with certain further requirements (size of the series, free float, completed business years, etc.). A public transaction, involving the securities series to be listed is mandatory on the Prime Market as well, however, in this category, issuers may request a one-year postponement to fulfill this obligation.[13][14][15]

On the Exchange, the right to trade is ensured exclusively for persons to whom the Exchange has given the respective licence, the so-called trading licence. Investors can realize their deals on the exchange through these exchange-trading companies. Exchange trading takes place in sections, at present there are four such sections: equities section, debt securities section, derivatives section, commodity section.

Trading at the Budapest Stock Exchange is governed by clear rules, which apply equally for all trading participants. Independent market surveillance is made by Hungarian National Bank’s Market Supervision Board. It holds primary responsibility for enforcing the securities laws, proposing securities rules, and regulating the securities industry, the country's stock and options exchanges, and other activities and organizations, including the electronic securities markets in Hungary.[16]

With a view to improving the continuity of prices and to avoid mistrades, several protective mechanisms are in place for the trading venues Xetra and Budapest Stock Exchange. These include volatility interruption, market order interruption, and liquidity interruption measures.

The Hungarian Stock Exchange, the ancestor of today’s Budapest Stock Exchange (BSE) started its operation on 18 January 1864 in Pest on the banks of the Danube, in a building of the Lloyd Insurance Company. The committee in charge of setting up the exchange was led by Frigyes Kochmeister, who was also elected as the first chairman of the exchange (1864–1900). When the exchange was launched in 1864, there were 17 equities, one debenture, 11 foreign currencies and 9 bills of exchange listed. After a few years of slow growth, 1872 saw the first significant market boom, when the Minister of Trade approved the articles of incorporation of 15 industrial and 550 financial companies whose shares were then listed on the exchange. The BSCE moved into a new building in 1873 and until 1905 continued its operations in a building on the corner of Wurm Street (now Szende Pál Street). In 1905 it relocated to the Exchange Palace on Liberty Square.

The first real market crash of the exchange occurred in May 1873. The early 1890s marked another period of spectacular market boom in the exchange’s history, partially fuelled by a general investment optimism that was characteristic of the Millennium years, and by recent trends in the international stock markets. Following 1889 the stock prices of companies listed on the Budapest Stock Exchange were also published in Vienna, Frankfurt, London and Paris. From the 1890s Hungarian government bonds were regularly traded on the stock exchanges of London, Paris, Amsterdam and Berlin.

By the turn of the century, there were already 310 securities traded on the exchange; by the beginning of World War I, this increased to almost 500. The annual turnover in 1913 reached one million shares and the turnover of the Budapest Giro and Mutual Society amounted to 2.7 billion Crowns (the ancestor of the Forint). At the same time there was also a dynamic expansion in grain trading with almost 400,000 tons in 1875, growing to one million tons by the turn of the century and close to one and a half million tons by WWI. As a result of this expansion the BSCE was propelled to become the leading grain exchange in Europe.

As in most European countries, the outbreak of World War I brought about the exchange’s closure on 27 July 1914, although trading did not cease. Brokers continued trading during the war and equity prices showed a massive increase starting in 1914. By 1918 over 7.2 million securities had been traded in a year. The exchange reopened after the war were, the post-war inflationary environment pushed exchange turnover to exceptional highs, tempered only by the introduction in 1925 of the country’s new currency, the pengő. The following four years leading to the market crash of the New York Stock Exchange in October 1929 saw the downturn of the BSCE. On 14 July 1931, the BSCE was closed down again as a result of a German banking moratorium and a series of financial collapses of the continent’s major banks. Bond trading officially resumed only in 1932, followed by trading in the 18 most traded equities. Following a short period of recovery, the market entered an expansionary phase in 1934, reaching its peak in 1936.

When Hungary entered World War II, the exchange saw a period of unprecedented boom, and equity prices in the heavy and military industries increased manifold. In 1942 the government applied stricter measures for the BSCE articles of incorporation and set maximum values on daily price changes. Despite these restrictions the exchange was able to continue its operations until the start of the city’s siege in mid-December 1944. World War II was followed by a period of hyperinflation, characterized by a lively private stock and real exchange trading in currencies and precious metals, conducted partially in the damaged building of the exchange. The exchange officially re-opened in August 1946, following the launch of the forint on August 1. As companies defaulted on their payments of bonds issued previously in the crown and pengő currencies, and since limited companies failed to pay dividends on their stocks due to the war damages they suffered, prices kept falling. Two months after the 1948 nationalisation of the majority of private Hungarian firms, the government officially dissolved the Budapest Stock and Commodity Exchange, and the exchange’s assets became state property.

The first milestone in the re-open of Budapest Stock Exchange was the Government of Hungary’s decision to give green light for the preparation of the Securities Act of 1989.[17] The draft bill was submitted to Parliament in January 1990 and came into force on 1 March. At the same time that the bill came into force on 21 June 1990, the BSE held its statutory general meeting and the Exchange re-opened its doors. With 41 founding members and one single equity, IBUSZ, the Budapest Stock Exchange was set up as a sui generis organisation, an independent legal entity. The re-establishment of the market economy during the same time and the privatisation of businesses played a decisive role in the exchange’s operations. Even though the sale of the larger state-owned businesses often involved the assistance of strategic investors, the BSE played a significant role in the privatisation of many leading Hungarian companies including Rába, MOL Group, OTP Bank, Magyar Telekom, Danubius Hotels Group, Richter Gedeon Co., IBUSZ, Skála-Coop, Globus and more.

The first trading floor was in the Trade Center on Váci Street, followed by its move in 1992 to the atmospheric old building at Deák Ferenc Street in Belváros-Lipótváros, where it continued its operations for 15 years. In March, 2007 the BSE moved to the former Herczog Palace at 93 Andrássy Avenue. The Open outcry system of the physical trading floor that characterized the spot market functioned with partial electronic support until 1995. From 1995 until November, 1998 securities trading took place concurrently on the trading floor and in a remote trading system, when the new MultiMarket Trading System (MMTS), based entirely on remote trading was launched. The traditional “battlefield rumble” of the physical trading floor ceased within a year by September 1999, at which time physical trading was entirely replaced by the electronic remote trading platform of the derivatives market. Derivatives market of the BSE in futures and options contracts has been available to investors since 1995. BUX contracts have been available for trading since the start of the futures market on 31 March 1995. In July, 1998 the BSE was among the first exchanges in the world to introduce contracts based on individual equities. Another series of standardised derivatives in the options market appeared in February, 2000 and on 6 September 2004 trading commenced in the exchange’s second index, the BUMIX. In January, 2010, BSE became a member of the CEE Stock Exchange Group.

On 6 December 2013, on the occasion of the exchange’s new trading platform launch the stock exchange trading was ceremonially opened by Mihály Varga, Minister of National Economy. That day the new Xetra trading system replaced the system that has been in use for 15 years. In February 2015 the BSE moved to new permises to the Liberty Square. The current offices of BSE are located in the financial centre of Budapest, near to the historical Exchange Palace. On 20 November 2015 the Hungarian National Bank concluded a sales contract with the Austrian CEESEG AG and Österreichische Kontrollbank AG, the entities that to date held a 68.8 per cent ownership in BSE.[18]

1.
Stock exchange
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A stock exchange or bourse is an exchange where stock brokers and traders can buy and/or sell stocks, bonds, and other securities. Stock exchanges may also provide facilities for issue and redemption of securities and other financial instruments, Securities traded on a stock exchange include stock issued by listed companies, unit trusts, derivatives, pooled investment products and bonds. Stock exchanges often function as continuous auction markets, with buyers and sellers consummating transactions at a central location, to be able to trade a security on a certain stock exchange, it must be listed there. Trade on an exchange is restricted to brokers who are members of the exchange, the initial public offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market, supply and demand in stock markets are driven by various factors that, as in all free markets, affect the price of stocks. There is usually no obligation for stock to be issued via the exchange itself. Such trading may be off exchange or over-the-counter and this is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges are part of a securities market. The idea of debt dates back to the ancient world, as evidenced for example by ancient Mesopotamian clay tablets recording interest-bearing loans, there is little consensus among scholars as to when corporate stock was first traded. Some see the key event as the Dutch East India Companys founding in 1602, economist Ulrike Malmendier of the University of California at Berkeley argues that a share market existed as far back as ancient Rome. One such service was the feeding of geese on the Capitoline Hill as a reward to the birds after their honking warned of a Gallic invasion in 390 B. C. Participants in such organizations had partes or shares, a concept mentioned various times by the statesman, in one speech, Cicero mentions shares that had a very high price at the time. Such evidence, in Malmendiers view, suggests the instruments were tradable, the societas declined into obscurity in the time of the emperors, as most of their services were taken over by direct agents of the state. Tradable bonds as a used type of security were a more recent innovation, spearheaded by the Italian city-states of the late medieval. While the Italian city-states produced the first transferable government bonds, they did not develop the other ingredient necessary to produce a fully fledged capital market, the Dutch East India Company became the first company to offer shares of stock. Control of the company was held tightly by its directors, with shareholders not having much influence on management or even access to the companys accounting statements. However, shareholders were rewarded well for their investment, the company paid an average dividend of over 16 percent per year from 1602 to 1650. Financial innovation in Amsterdam took many forms, by the 1620s, the company was expanding its securities issuance with the first use of corporate bonds

2.
Liberty Square (Budapest)
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Liberty Square is a public square located in the Lipótváros neighborhood of Budapest, Hungary. The square is a mix of business and residential, the United States Embassy in Hungary and the headquarters for the Hungarian National Bank are located in the square. The Bank of Hungary building is in the historicist style of architecture, some buildings on the square are designed in the Art Nouveau style. Two buildings were designed by Ignác Alpár, there are monuments for Ronald Reagan and Harry Hill Bandholtz. There is also a monument for Soviet liberation of Hungary in World War II from Nazi German occupation and it was designed by Károly Antal. A barrack-prison that had occupied the space, was the site of the execution of Prime Minister Lajos Batthyány in 1849. The building was destroyed in 1897 and the square was built thereafter

3.
Budapest
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Budapest is the capital and most populous city of Hungary, one of the largest cities in the European Union and sometimes described as the primate city of Hungary. It has an area of 525 square kilometres and a population of about 1.8 million within the limits in 2016. Budapest became a single city occupying both banks of the Danube river with the unification of Buda and Óbuda on the west bank, the history of Budapest began with Aquincum, originally a Celtic settlement that became the Roman capital of Lower Pannonia. Hungarians arrived in the territory in the 9th century and their first settlement was pillaged by the Mongols in 1241–1242. The re-established town became one of the centres of Renaissance humanist culture by the 15th century, following the Battle of Mohács and nearly 150 years of Ottoman rule, the region entered a new age of prosperity, and Budapest became a global city after its unification in 1873. It also became the co-capital of the Austro-Hungarian Empire, a power that dissolved in 1918. Budapest was the point of the Hungarian Revolution of 1848, the Hungarian Republic of Councils in 1919, the Battle of Budapest in 1945. Budapest is an Alpha- global city, with strengths in arts, commerce, design, education, entertainment, fashion, finance, healthcare, media, services, research, and tourism. Its business district hosts the Budapest Stock Exchange and the headquarters of the largest national and international banks and it is the highest ranked Central and Eastern European city on Innovation Cities Top 100 index. Budapest attracts 4.4 million international tourists per year, making it the 25th most popular city in the world, further famous landmarks include Andrássy Avenue, St. It has around 80 geothermal springs, the worlds largest thermal water system, second largest synagogue. Budapest is home to the headquarters of the European Institute of Innovation and Technology, the European Police College, over 40 colleges and universities are located in Budapest, including the Eötvös Loránd University, Central European University and Budapest University of Technology and Economics. Budapest is the combination of the city names Buda and Pest, One of the first documented occurrences of the combined name Buda-Pest was in 1831 in the book Világ, written by Count István Széchenyi. The origins of the names Buda and Pest are obscure, according to chronicles from the Middle Ages, the name Buda comes from the name of its founder, Bleda, brother of the Hunnic ruler Attila. The theory that Buda was named after a person is also supported by modern scholars, an alternative explanation suggests that Buda derives from the Slavic word вода, voda, a translation of the Latin name Aquincum, which was the main Roman settlement in the region. There are also theories about the origin of the name Pest. One of the states that the word Pest comes from the Roman times. According to another theory, Pest originates from the Slavic word for cave, or oven, the first settlement on the territory of Budapest was built by Celts before 1 AD

4.
Hungary
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Hungary is a unitary parliamentary republic in Central Europe. With about 10 million inhabitants, Hungary is a member state of the European Union. The official language is Hungarian, which is the most widely spoken language in Europe. Hungarys capital and largest metropolis is Budapest, a significant economic hub, major urban areas include Debrecen, Szeged, Miskolc, Pécs and Győr. His great-grandson Stephen I ascended to the throne in 1000, converting the country to a Christian kingdom, by the 12th century, Hungary became a middle power within the Western world, reaching a golden age by the 15th century. Hungarys current borders were established in 1920 by the Treaty of Trianon after World War I, when the country lost 71% of its territory, 58% of its population, following the interwar period, Hungary joined the Axis Powers in World War II, suffering significant damage and casualties. Hungary became a state of the Soviet Union, which contributed to the establishment of a four-decade-long communist dictatorship. On 23 October 1989, Hungary became again a democratic parliamentary republic, in the 21st century, Hungary is a middle power and has the worlds 57th largest economy by nominal GDP, as well as the 58th largest by PPP, out of 188 countries measured by the IMF. As a substantial actor in several industrial and technological sectors, it is both the worlds 36th largest exporter and importer of goods, Hungary is a high-income economy with a very high standard of living. It keeps up a security and universal health care system. Hungary joined the European Union in 2004 and part of the Schengen Area since 2007, Hungary is a member of the United Nations, NATO, WTO, World Bank, the AIIB, the Council of Europe and Visegrád Group. Well known for its cultural history, Hungary has been contributed significantly to arts, music, literature, sports and science. Hungary is the 11th most popular country as a tourist destination in Europe and it is home to the largest thermal water cave system, the second largest thermal lake in the world, the largest lake in Central Europe, and the largest natural grasslands in Europe. The H in the name of Hungary is most likely due to historical associations with the Huns. The rest of the word comes from the Latinized form of Medieval Greek Oungroi, according to an explanation the Greek name was borrowed from Proto-Slavic Ǫgǔri, in turn borrowed from Oghur-Turkic Onogur. Onogur was the name for the tribes who later joined the Bulgar tribal confederacy that ruled the eastern parts of Hungary after the Avars. The Hungarians likely belonged to the Onogur tribal alliance and it is possible they became its ethnic majority. The Hungarian endonym is Magyarország, composed of magyar and ország, the word magyar is taken from the name of one of the seven major semi-nomadic Hungarian tribes, magyeri

5.
Hungarian forint
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The forint is the currency of Hungary. It is divided into 100 fillér, although fillér coins are no longer in circulation, the introduction of the forint on 1 August 1946 was a crucial step of the post-World War II stabilization of the Hungarian economy, and the currency remained relatively stable until the 1980s. Transition to market economy in the early 1990s deteriorated the value of the forint, since 2001, inflation is single digit and the forint was declared fully convertible. As a member of the European Union, the long term aim of the Hungarian government may be to replace the forint with the euro, the forints name comes from the city of Florence, where golden coins were minted from 1252 called fiorino doro. In Hungary, florentinus, also a currency, was used from 1325 under Charles Robert. Between 1868 and 1892 the forint was the used in Hungarian for the currency of the Austro-Hungarian Empire. It was subdivided into 100 krajczár, the forint was reintroduced on 1 August 1946, after the pengő was rendered almost worthless by massive hyperinflation in 1945–46—the highest ever recorded. The process was managed by the Hungarian Communist Party, which held the relevant cabinet seats, the forints success was exploited for political gains, contributing to the Communists takeover of complete power in 1948–49. The forint replaced the pengő at the rate of 1 forint = 4×1029 pengő—dropping 29 zeroes from the old currency, in fact, this was an imaginary exchange rate. With the highest value note being 100 million B. pengő, of more significance was the exchange rate to the adópengő of 1 forint =200 million adópengő. Historically the forint was subdivided into 100 fillér, although coins have been rendered useless by inflation and have not been in circulation since 1999. The Hungarian abbreviation for forint is Ft, which is written after the number with a space between, the name fillér, the subdivision of all Hungarian currencies since 1925, comes from the German word Heller. The abbreviation for the fillér is f, written also after the number with a space in between, after the democratic change of 1989–90, the forint saw yearly inflation figures of app. 35% for three years, but significant market economy reforms helped stabilize it. Since year 2000 the relatively high value of forint handicaps the strongly export-oriented Hungarian industry against foreign competitors with lower valued currencies, in 1946, coins were introduced in denominations of 2,10,20 fillérs and 1,2,5 forints. The silver 5 forint was reissued only in the next year,5 and 50 fillérs coins were issued in 1948. In 1967, a 5 forint coin was reintroduced, followed by a 10 forint in 1971 and 20 forint in 1982. In 1992, a new series of coins was introduced in denominations of 1,2,5,10,20,50,100 and 200 forint, production of the 2 and 5 fillér coins ceased in 1992, with all fillér coins withdrawn from circulation by 1999. From 1996, a bicolor 100 forint coin was minted to replace the 1992 version, since the latter was considered too big and ugly, silver 200 forint coins were withdrawn in 1998, the 1 and 2 forint coins remained in circulation until 29 February 2008

6.
Market (economics)
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A market is one of the many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers and it can be said that a market is the process by which the prices of goods and services are established. Markets facilitate trade and enable the distribution and allocation of resources in a society, Markets allow any trade-able item to be evaluated and priced. A market emerges more or less spontaneously or may be constructed deliberately by human interaction in order to enable the exchange of rights of services, Markets can also be worldwide, for example the global diamond trade. National economies can be classified, for example as developed markets or developing markets, in mainstream economics, the concept of a market is any structure that allows buyers and sellers to exchange any type of goods, services and information. The exchange of goods or services, with or without money, is a transaction, a major topic of debate is how much a given market can be considered to be a free market, that is free from government intervention. However it is not always clear how the allocation of resources can be improved since there is always the possibility of government failure, a market is one of the many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers and it can be said that a market is the process by which the prices of goods and services are established. Markets facilitate trade and enables the distribution and allocation of resources in a society, Markets allow any trade-able item to be evaluated and priced. A market sometimes emerges more or less spontaneously but is often constructed deliberately by human interaction in order to enable the exchange of rights of services. Markets of varying types can spontaneously arise whenever a party has interest in a good or service that other party can provide. Hence there can be a market for cigarettes in correctional facilities, another for chewing gum in a playground, and yet another for contracts for the future delivery of a commodity. Markets vary in form, scale, location, and types of participants, as well as the types of goods and services traded, nevertheless, violence and they apply the market dynamics to facilitate information aggregation. However, market prices may be distorted by a seller or sellers with monopoly power, such price distortions can have an adverse effect on market participants welfare and reduce the efficiency of market outcomes. Also, the level of organization and negotiating power of buyers and sellers markedly affects the functioning of the market. Markets are a system, and systems have structure, the structure of a well-functioning market is defined by the theory of perfect competition. Market failures are often associated with time-inconsistent preferences, information asymmetries, non-perfectly competitive markets, principal–agent problems, externalities, among the major negative externalities which can occur as a side effect of production and market exchange, are air pollution and environmental degradation. There exists a popular thought, especially among economists, that markets would have a structure of a perfect competition

7.
Stock certificate
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In corporate law, a stock certificate is a legal document that certifies ownership of a specific number of shares or stock in a corporation. Over time, these functions have been rendered redundant by statutory schemes to streamline the administrative burden on corporations, most jurisdictions now require corporations to maintain records of ownership or transfers of shareholdings, and do not permit share certificates to be issued to bearer. Ruben Schalk, history student at the Universiteit Utrecht, discovered the so far oldest share certificate in the world in the Westfries Archief in Hoorn, the certificate dates from 9 September 1606 and was issued by the VOC-chamber Enkhuizen. It was sold to Pieter Hermanszoon Boode, the second page records the payments of dividend. In the United States and other countries, electronic registration is supplanting the stock certificate, in the United States over 420 of the 7, 000-plus publicly traded securities do not issue paper certificates. The United States Central Securities Depository, the DTC, has continued to promote efforts to eliminate paper stock certificates. Countries around the world have adopted similar initiatives with many countries setting deadlines for statutory dematerialization, another alternative to both paper and electronic registration is the use of paper-equivalent electronic stock certificates. Forty-seven states have enacted legislation equivalent to the Uniform Electronic Transactions Act, in Sweden, share certificates have been largely abolished, people using electronic shares instead. Sometimes a shareholder with a certificate can give a proxy to another person to allow them to vote the shares in question. Similarly, a shareholder without a certificate may often give a proxy to another person to allow them to vote the shares in question. Voting rights are defined by the charter and corporate law. Stock certificates are generally divided into two forms, registered stock certificates and bearer stock certificates, a registered stock certificate is normally only evidence of title, and a record of the true holders of the shares will appear in the stockholders register of the corporation. A bearer stock certificate, as its name implies is a bearer instrument, a stock certificate represents a legal proprietary interest in the common stock or assets of the issuer corporation. Registration of transfer is a type of novation, there are old company research websites that can determine, for a fee, whether or not an old stock certificate or bond certificate has collectible or redeemable value. Bearer bond Bearer instrument Scripophily Stock certificates franked with revenue tax stamps Dematerialization Direct holding system

8.
Finance
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Finance is a field that deals with the study of investments. It includes the dynamics of assets and liabilities over time under conditions of different degrees of uncertainty, Finance can also be defined as the science of money management. Finance aims to price assets based on their level and their expected rate of return. Finance can be broken into three different sub-categories, public finance, corporate finance and personal finance. g, health and property insurance, investing and saving for retirement. Personal finance may also involve paying for a loan, or debt obligations, net worth is a persons balance sheet, calculated by adding up all assets under that persons control, minus all liabilities of the household, at one point in time. Household cash flow totals up all the sources of income within a year. From this analysis, the financial planner can determine to what degree, adequate protection, the analysis of how to protect a household from unforeseen risks. These risks can be divided into the following, liability, property, death, disability, health, some of these risks may be self-insurable, while most will require the purchase of an insurance contract. Determining how much insurance to get, at the most cost effective terms requires knowledge of the market for personal insurance, business owners, professionals, athletes and entertainers require specialized insurance professionals to adequately protect themselves. Since insurance also enjoys some tax benefits, utilizing insurance investment products may be a piece of the overall investment planning. Tax planning, typically the income tax is the single largest expense in a household, managing taxes is not a question of if you will pay taxes, but when and how much. Government gives many incentives in the form of tax deductions and credits, most modern governments use a progressive tax. Typically, as ones income grows, a marginal rate of tax must be paid. Understanding how to take advantage of the tax breaks when planning ones personal finances can make a significant impact in which it can later save you money in the long term. Investment and accumulation goals, planning how to accumulate enough money - for large purchases, major reasons to accumulate assets include, purchasing a house or car, starting a business, paying for education expenses, and saving for retirement. Achieving these goals requires projecting what they will cost, and when you need to withdraw funds that will be necessary to be able to achieve these goals, a major risk to the household in achieving their accumulation goal is the rate of price increases over time, or inflation. Using net present value calculators, the planner will suggest a combination of asset earmarking. In order to overcome the rate of inflation, the investment portfolio has to get a higher rate of return, managing these portfolio risks is most often accomplished using asset allocation, which seeks to diversify investment risk and opportunity

9.
Central business district
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A central business district is the commercial and business centre of a city. In larger cities, it is synonymous with the citys financial district. Both the CBD and the city centre or downtown may also coincide with the central activities district, a citys CBD is usually typified by a concentration of retail and office buildings. The CBD usually has a density higher than the surrounding districts of the city. The CBD is often also the city centre or downtown, Mexico City also has a historic city centre, the colonial-era Centro Histórico, along with two CBDs, the mid-late 20th century Paseo de la Reforma - Polanco, and the new Santa Fe. The shape and type of a CBD almost always reflect the citys history. Cities with maximum building height restrictions often have a historic section quite apart from the financial. It has been said that downtowns are therefore distinct from both CBDs and city centres. CBDs usually have very small resident populations, for example, the population of the City of London declined from over 200,000 in the year 1700 to less than 10,000 today. In some instances, however, CBD populations are increasing as younger professional, the Buenos Aires Central Business District, is the main commercial centre of Buenos Aires, the capital of Argentina. The actual area was the point of first European settlement and its north-south axis runs from Monserrat in the south to Retiro railway station in the north. Its east-west axis runs from Buenos Aires Ecological Reserve and Puerto Madero, the district is the financial, commercial, and cultural hub of Argentina. Its port is one of the busiest in South America, navigable rivers by way of the Río de la Plata connect the port to northeast Argentina, Brazil, Uruguay, and Paraguay. As a result, it serves as the hub for a vast area of the southeastern region of the South American continent. Tax collection related to the port has caused political problems in the past. The Buenos Aires Human Development Index is likewise high by international standards, the term is used to refer to the business and financial area of a state capital city such as the Sydney CBD, Melbourne CBD, Brisbane CBD, Perth CBD and Adelaide CBD. The city centres of some cities, such as Townsville, Bendigo. More recently, in cities the city centre, which may or may not be distinct from the CBD, is increasingly separately identified

10.
Austria-Hungary
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The union was a result of the Austro-Hungarian Compromise of 1867 and came into existence on 30 March 1867. Austria-Hungary consisted of two monarchies, and one region, the Kingdom of Croatia-Slavonia under the Hungarian crown. It was ruled by the House of Habsburg, and constituted the last phase in the evolution of the Habsburg Monarchy. Following the 1867 reforms, the Austrian and the Hungarian states were co-equal, Foreign affairs and the military came under joint oversight, but all other governmental faculties were divided between respective states. Austria-Hungary was a state and one of the worlds great powers at the time. Austria-Hungary was geographically the second-largest country in Europe after the Russian Empire, at 621,538 km2, the Empire built up the fourth-largest machine building industry of the world, after the United States, Germany, and the United Kingdom. After 1878, Bosnia and Herzegovina was under Austro-Hungarian military and civilian rule until it was annexed in 1908. The annexation of Bosnia also led to Islam being recognized as a state religion due to Bosnias Muslim population. Austria-Hungary was one of the Central Powers in World War I and it was already effectively dissolved by the time the military authorities signed the armistice of Villa Giusti on 3 November 1918. The realms full, official name was The Kingdoms and Lands Represented in the Imperial Council, each enjoyed considerable sovereignty with only a few joint affairs. Certain regions, such as Polish Galicia within Cisleithania and Croatia within Transleithania, enjoyed autonomous status, the division between Austria and Hungary was so marked that there was no common citizenship, one was either an Austrian citizen or a Hungarian citizen, never both. This also meant that there were always separate Austrian and Hungarian passports, however, neither Austrian nor Hungarian passports were used in the Kingdom of Croatia-Slavonia-Dalmatia. Instead, the Kingdom issued its own passports which were written in Croatian and French and it is not known what kind of passports were used in Bosnia-Herzegovina, which was under the control of both Austria and Hungary. The Kingdom of Hungary had always maintained a separate parliament, the Diet of Hungary, the administration and government of the Kingdom of Hungary remained largely untouched by the government structure of the overarching Austrian Empire. Hungarys central government structures remained well separated from the Austrian imperial government, the country was governed by the Council of Lieutenancy of Hungary – located in Pressburg and later in Pest – and by the Hungarian Royal Court Chancellery in Vienna. The Hungarian government and Hungarian parliament were suspended after the Hungarian revolution of 1848, despite Austria and Hungary sharing a common currency, they were fiscally sovereign and independent entities. Since the beginnings of the union, the government of the Kingdom of Hungary could preserve its separated. After the revolution of 1848–1849, the Hungarian budget was amalgamated with the Austrian, from 1527 to 1851, the Kingdom of Hungary maintained its own customs controls, which separated her from the other parts of the Habsburg-ruled territories

The term bourse is derived from the 13th-century inn named "Huis ter Beurze" (center) in Bruges. From Dutch-speaking cities of the Low Countries, the term 'beurs' spread to other European states where it was corrupted into 'bourse', 'borsa', 'bolsa', 'börse', etc. In England, too, the term ‘bourse’ was used between 1550 and 1775, eventually giving way to the term ‘royal exchange’.

In business, economics or investment, market liquidity is a market's ability to purchase or sell an asset without …

Gold is a substance with high market liquidity, as it may be sold quickly without having to reduce the price.

This old church building for sale in Cheshire, England, has relatively low liquidity. It could be sold in a matter of days at a low price, but it could take several years to find a buyer who is willing to pay a reasonable price.

A swap is a derivative contract where two parties exchange financial instruments. Most swaps are derivatives in which …

The CDS and currency swap markets are dwarfed by the interest rate swap market. All three markets peaked in mid-2008. Source: BIS Semiannual OTC derivatives statistics at end-December 2008

A is currently paying floating, but wants to pay fixed. B is currently paying fixed but wants to pay floating. By entering into an interest rate swap, the net result is that each party can 'swap' their existing obligation for their desired obligation. Normally, the parties do not swap payments directly, but rather each sets up a separate swap with a financial intermediary such as a bank. In return for matching the two parties together, the bank takes a spread from the swap payments.